In the valuation of inventory at the end of an accounting period, the following costs are included:
A) manufacturing costs.
B) manufacturing and upstream costs.
C) manufacturing and downstream costs.
D) manufacturing, upstream and downstream costs.

Question

Quizplus · Accepted Answer

Manufacturing costs are included in the valuation of inventory, as they directly relate to the production of the goods. Upstream costs (pre-production) and downstream costs (post-production) are not typically included in inventory valuation.

In the Valuation of Inventory at the End of an Accounting